Archive for July, 2017

A long-standing point of confusion for many RIAs is whether or not they are subject to the SEC’s custody rules when moving client assets from one account to another. Many consider having a letter of authorization from the client to move money between accounts exempts them from being considered custodians in the SEC’s eyes. “A recent communication from the SEC reminded them that that is not the case, and they could be subject to the rule, which would require them to obtain a ‘surprise examination’ and an audit of those assets by a qualified accountant,” explains Brian Hamburger, president and CEO of MarketCounsel, a business and regulatory consulting firm for independent advisers.

A long-standing point of confusion for many RIAs is whether or not they are subject to the SEC’s custody rules when moving client assets from one account to another. Many consider having a letter of authorization from the client to move money between accounts exempts them from being considered custodians in the SEC’s eyes. “A recent communication from the SEC reminded them that that is not the case, and they could be subject to the rule, which would require them to obtain a ‘surprise examination’ and an audit of those assets by a qualified accountant,” explains Brian Hamburger, president and CEO of MarketCounsel, a business and regulatory consulting firm for independent advisers.

Advisers who seek to give back to their community — while also attracting new clients — often consider serving on the boards of charities or nonprofits. However, just because the cause may be a worthy one doesn’t mean that there aren’t conflicts of interest or other pitfalls along the way. Dan Bernstein, chief regulatory counsel at MarketCounsel, says, “Sometimes people think, ‘Hey, it’s for a charity; I’m not making money off this.’ But it still rises to the level of having conflicts and supervision.” MarketCounsel is an Englewood, N.J.-based firm that offers business and regulatory consulting services to investment advisers.

The DOL’s fiduciary rule opens up advisors to the possibility of more negligence claims. “There’s no magic formula to avoid litigation, but to better protect themselves, advisors should seek to follow the rule’s mandate by acting in their clients’ best interests at all times”, said Brian Hamburger, president and CEO of MarketCounsel, a business and regulatory consulting firm for investment advisors. He adds advisors need to ensure that clients are engaged in the investment planning process and have a good grasp of the financial products being recommended, and why these products are an appropriate choice. Taking these protective steps will better position advisors against the heightened threat of negligence claims.

The DOL’s fiduciary rule opens up advisors to the possibility of more negligence claims. “There’s no magic formula to avoid litigation, but to better protect themselves, advisors should seek to follow the rule’s mandate by acting in their clients’ best interests at all times”, said Brian Hamburger, president and CEO of MarketCounsel, a business and regulatory consulting firm for investment advisors. He adds advisors need to ensure that clients are engaged in the investment planning process and have a good grasp of the financial products being recommended, and why these products are an appropriate choice. Taking these protective steps will better position advisors against the heightened threat of negligence claims.

The DOL’s fiduciary rule opens up advisors to the possibility of more negligence claims. “There’s no magic formula to avoid litigation, but to better protect themselves, advisors should seek to follow the rule’s mandate by acting in their clients’ best interests at all times”, said Brian Hamburger, president and CEO of MarketCounsel, a business and regulatory consulting firm for investment advisors. He adds advisors need to ensure that clients are engaged in the investment planning process and have a good grasp of the financial products being recommended, and why these products are an appropriate choice. Taking these protective steps will better position advisors against the heightened threat of negligence claims.

The DOL’s fiduciary rule opens up advisors to the possibility of more negligence claims. “There’s no magic formula to avoid litigation, but to better protect themselves, advisors should seek to follow the rule’s mandate by acting in their clients’ best interests at all times”, said Brian Hamburger, president and CEO of MarketCounsel, a business and regulatory consulting firm for investment advisors. He adds advisors need to ensure that clients are engaged in the investment planning process and have a good grasp of the financial products being recommended, and why these products are an appropriate choice. Taking these protective steps will better position advisors against the heightened threat of negligence claims.

The DOL’s fiduciary rule opens up advisors to the possibility of more negligence claims. “There’s no magic formula to avoid litigation, but to better protect themselves, advisors should seek to follow the rule’s mandate by acting in their clients’ best interests at all times”, said Brian Hamburger, president and CEO of MarketCounsel, a business and regulatory consulting firm for investment advisors. He adds advisors need to ensure that clients are engaged in the investment planning process and have a good grasp of the financial products being recommended, and why these products are an appropriate choice. Taking these protective steps will better position advisors against the heightened threat of negligence claims.